CHAPTER 5 RESEARCH METHODOLOGY OF THE STUDY
5.5 Research design
“Research involves the application of various methods and techniques in order to create scientifically obtained knowledge by means of various objective methods and procedures” (Welman et al, 2005, p2). Welman explains two main approaches to the research process, the qualitative approach and the quantitative approach.
These methods have been discussed in order to understand why a qualitative single-case study approach has been employed as the primary data collection methodology in this research.
Quantitative research focuses on the measurement (in terms of quantity, intensity, frequency or amount) and analysis of causal relationships between different variables from an objective point of view. Qualitative research focuses on the processes and meanings that are derived from the causal relationship between different variables. For example, quantitative research would attempt to measure the level of employee satisfaction with the BIS they are required to use. Qualitative research, on the other hand, would not only attempt to discover their level of satisfaction, but also determine the reasons behind their satisfaction or dissatisfaction. The aim of quantitative research is to generalize about a specific population with results from a sample of that population, whereas the aim of qualitative research is to understand the significance which participants of a specific population attach to their environment (Welman et al, 2005, p8). Quantitative research is based on complex structured methods and is limited in flexibility in order to prevent any bias in the results, whereas qualitative research is both flexible and explorative so that data may be changed so that a progressively deeper understanding of what is being investigated can be achieved. Quantitative research employs a ‘particularistic’ approach by using specific measurement instruments to collect data, whereas qualitative research employs a ‘holistic’ approach whereby an array of data are collected from multiple sources. Quantitative research “enables
researchers to focus on regularity, repeatability, and the verification and validation of causal relationships” (Whitman, 2004, p308). Qualitative research, however, explores unique, context-rich phenomena that can not be generalized or easily replicable. Quantitative data are drawn from a large number of cases with results being based on statistical significance, but qualitative data are drawn from small sample sizes and studied in an in-depth manner.
In this research study, the exploratory qualitative research method with thematic analysis has been utilized. “The primary task of qualitative research is to uncover and explicate the way in which people in particular settings come to understand, account for, take action, and manage their situation as well as the problems and difficulties they encounter” (Welman et al, 2005, p193). The employment of qualitative research techniques will “provide a richness and depth of data which cannot be matched by most of the other forms of data collection” (Martins et al, 1999, p135). The objective is to study the nature of a complex and multi-faceted relationship between BIS technology and SCM within the food and drug retail sector.
It is for this reason that in-depth interviews have been utilized for the qualitative case study research at Pick ‘n Pay (Pty) Ltd, our leading food and drug retail chain in South Africa. The primary purpose is to study the nature of the phenomenon, not the quantity or amount of it. Qualitative research techniques have been employed to study a set of unique circumstances together with unique technologies and human behaviour at Pick ‘n Pay (Pty) Ltd, within KwaZulu-Natal. This qualitative research approach facilitated the intended detailed examination of the relationship between BIS and SCM, the influences they have on one another, the influence they have on their environments and the how BIS can be used to improve/optimise supply chain processes. The results from this qualitative enquiry are unique and can not be generalized across other retail chains within that sector.
According to Burgess, “one case can in no sense establish a general proposition”
(Burgess, 1998, p3). Variables of relationships, which were both known and unknown, have been explored and cannot be understood without appreciating the context in which they take place.
The criteria for selecting a single-case or multiple cases to study depended on whether the case was critical, topical or feasible (Yin, 1993, p33). Pick ‘n Pay (Pty) Ltd was selected as a result of its local market dominance in the food and drug retail sector. It held a critical and unique position in the South African marketplace – holding majority market share.
The phenomenon being studied is topically relevant because the need for retailers to differentiate their product offering is critical in today’s cut-throat market. The study is feasible, as it was only the KwaZulu-Natal region that was focused on.
In addition, a quantitative research element has been utilized to determine the characteristics that are generally applicable to the relationship between BIS and SCM in the food and drug retail sector.
To summarise, this study seeks to find out how BIS technology and SCM function, and how BIS can facilitate better/optimal SCM processes.
5.6 Research Methods and Procedures
Welman states that “Research methodology considers and explains the logic behind research methods and techniques” (Welman et al, 2005, p2). The research methods employed will be determined by the aim of a specific research project.
These methods and procedures have been developed to ensure that the information acquired is scientific. For example, scientific knowledge can be tested for its validity and reliability in relation to systematic observation. Systematic observation is explained as obtaining knowledge in a controlled manner, whereby alternative explanations are eliminated systematically through testing. Knowledge is also referred to as scientific if it is replicable, that is, the research results must be replicable should the same research study be undertaken by someone else.
Scientific knowledge is therefore open to critical assessment, and anyone replicating or repeating the research while employing the same procedures should obtain comparable results (Welman, 2005, p6). This section will explain the rationale behind the specified target population, the selection and number of participants, and the data collection methods used.
In this research study, the researcher examines the relationships that occur between two or more variables without any planned intervention. It is thus referred to as non-experimental field study research (Martins, 1999). The research will require the use of the content analysis where a single group of units of analysis is obtained and each individual is measured on two or more variables at more or less the same time; for example, the relationship between SCM and BIS technology (being the construct) being measured on two or more variables (product design, price, quality, availability, customer service).
Nominal measurements will be used where the numbers assigned to the variables only serve to distinguish them in terms of the attribute being measured (Welman, 2005). The construct (relationship) will be measured in accordance to its effect on price, quality, dependability, reliability, speed, flexibility, and after-sales service. For example, transportation systems that are integrated throughout a supply chain will reduce bottom line costs through the coordination of loads and preferential contract agreements with a PLP (primary logistics providers), consequently allowing the firm the ability to offer goods to customers at a lower price.
The qualitative approach will be used in that it takes into account that the researcher’s observations are not the reality as such, but an interpreted reality.
Case study research will be conducted by investigating Pick ‘n Pay’s supply chain activities. This will take place with semi-structured interviews.
5.6.1 Statistical Analysis
The researcher transcribed all collected data acquired at the interviews as it was recorded to Microsoft Excel. The comments were organized into similar categories.
The categories were derived from data in inductive content analysis. Information relating to another category was reallocated and recorded under the correct category, and any irrelevant information was omitted. Patterns, associations and causal relationships were then identified and discussed. Interval measurements were used in order to determine perceptions of the managers on SCM and BIS at Pick ‘n Pay (Pty) Ltd. For example, a Likert scale was used to determine manager’s
perceptions on the effectiveness of the systems they used. Data was unitized into SCM functions and BIS technologies.
5.6.2 Specifying the target population
The literature review briefly discussed the requirements, trends, influences, challenges and future of SCM and BIS within large food and drug retail enterprises both globally and locally. This was done in order to obtain a snap-shot of / benchmark the advancement and progress of these two fields within the retail service sector around the world. One of the South African leading food and drug retailers is Pick ‘n Pay (Pty) Ltd. Pick ‘n Pay will be examined via an in-depth case study in order to acquire an overall view of their supply chain and BIS technology requirements and use. The aim is to obtain expert knowledge on the relationship between BIS technology and SCM from the target group of upper, middle and lower management levels from Pick ‘n Pay (Pty) Ltd within the KwaZulu-Natal region. As Pick ‘n Pay utilizes the same BIS technologies throughout South Africa, it was feasible to interview 3 stores, 3 regional managers and 1 national manager.
5.6.3 Number of participants
The research has been based on a single case study which cannot be generalized to whole populations. The purpose of case study research is not to generalize to whole populations, as a case study is not a sampling unit randomly selected from a whole population. The aim was to conduct a holistic, in-depth study of certain phenomenon within a unique case. “Case material can give holistic accounts of events or life-patterns” (Burgess, 1998, p6). The participants in this research comprised of 7 managers from various management levels at Pick ‘n Pay (Pty) Ltd stores within the KwaZulu-Natal region. The researcher had intended to interview 8 managers, however the researcher was not able to secure an interview with the KwaZulu-Natal Regional Buyer. Privacy agreements between the parties and the researcher have been adhered to.
Company Participants/Position Date Time Pick ‘n Pay Corporate store at
Midlands Mall, Pietermaritzburg
Store Manager 10/10/2010 10h00- 11h00 Pick ‘n Pay Corporate store at
Musgrave Centre, Durban
Store Manager 13/10/2010 8h00- 9h30 Pick ‘n Pay Corporate store at
Pavilion, Westville
Store Manager 13/10/2010 11h00- 12h30 Pick ‘n Pay KZN Head Office at
Westville
Demand Planner 21/04/2011 8h00- 9h30 Pick ‘n Pay KZN Head Office at
Westville
Public Relations / Marketing
21/04/2011 10h00- 11h30 Pick ‘n Pay KZN Head Office at
Westville
Category Manager 21/04/2011 12h00- 13h30 Pick ‘n Pay National Head office
in Cape Town (interviewed telephonically)
National Supply Chain Manager
22/04/2010 11h30- 13h00
Table 5.1 Participant Information
5.6.4 Data collection methods
“The data collection method is dependent on the accuracy of the information which will be obtained by a particular method” (Martins et al, 1999, p124). Therefore the inherent strengths and weaknesses of various methods need to be clearly understood and evaluated according to the research requirements. Data collection methods should be selected according to the type of data required. In order for data to be reliable, irrespective of whether it is quantitative or qualitative in nature, the correct data collection methods must be utilized. In addition, “the method of collection should be free from personal prejudice” (Martins et al, 1999, p124).
The researcher had requested permission to record the interviews, however the participants indicated that they were not happy to be recorded. The data was therefore gathered by the researcher writing down the responses during the indepth
interviews, which was less time efficient, yet still reliable. The researcher ensured that the interviews were approximately 1.5 hours in length – giving the participants an equal amount of time to answer the questions. The same questions were asked to all the participants to ensure that the data would be comparable and reliable, however the terminology was adapted to fit the background and education level of some of the participants. The interviews took place in quiet environments with no disturbances. All participants were given the opportunity to talk freely about the topics raised by the researcher.
5.6.4.1 Secondary data
Secondary data was obtained by reviewing books, accredited journals, articles, white papers and the internet.
5.6.4.2 Primary data
The primary data was collected using both the qualitative in-depth interviews, and the quantitative survey method. As mentioned earlier, the in-depth interviews provided a depth and richness of detail in order to achieve a deeper understanding of the unique realities underlying the relationship within a specific context. These interviews were conducted with specific company managers at Pick ‘n Pay in top, middle and lower level management positions. For instance, the Purchasing Manager, Supply Chain Manager, Information Technology Manager, Marketing Manager and a General floor manager were interviewed at Pick ‘n Pay (Pty) Ltd’s Provincial Head Office in KwaZulu-Natal. Secondly, branch managers were interviewed from Pick ‘n Pay (Pty) Ltd’s top 5 branches with the highest turnover.
Thirdly, the supply chain and information technology managers were interviewed at each of those branches. The rationale behind interviewing managers from a diverse range of management levels is to ensure that a holistic management perspective (i.e. the strategic, tactical and hands-on) on these BIS and SCM processes were obtained. On the other hand, the quantitative research survey method will facilitate an investigation into a certain level of phenomenon, enabling a sector benchmark in this regard to be established.
5.6.4.3 In-depth Interviews
In-depth interviews are usually employed in explorative research with the specific purpose of identifying important variables in a particular area, and to formulate penetrating questions around them, as well as to generate hypotheses for further investigation (Welman et al, 2005, p197). In-depth interviews have been used instead of participant observation, for the reason that thoughts, feelings and opinions cannot be directly observed. Due to the explorative nature of the research, a semi-structured interview approach has been employed. Structured interviews are based on pre-determined questions, are inflexible, limiting and can inhibit the free flow of information. Unstructured interviews, on the other hand, allow for the free flow of information while being guided by a list of topics or themes that the interviewer should raise (Welman et al, 2005, p166). Semi-structured interviews were used in order to provide sufficient guidance in terms of keeping to what is applicable to the research, but also allowing for some flexibility in obtaining new knowledge that may be applicable. As mentioned in section 5.6.4, the researcher collected the data by writing down the participants responses.
5.6.4.4 Questionnaire Design
The questionnaire was semi-structured and comprised of both closed and open- ended questions. The initial questions were broad in order to get an overview of the business as a whole. The questions following that were more specific to the field of SCM in relation to food and drug retailing operations. The closed-ended questions offered a limited set of choices which could be classified into relatively fixed categories. These questions were a mixture of dichotomous, multiple-choice, scaled questions and rankings, such as the importance and usefulness of IT facilitated supplier relationships in retailing, or the effectiveness of IT scheduling of processes and movement of stock. The open-ended questions were to establish Pick ‘n Pay (Pty) Ltd’s perceptions and expectations of their supply chain activities, supplier/customer relationship and services. These would determine the required stance Pick ‘n Pay (Pty) Ltd is taking, and the relevance of various customer service interactions. A copy of the survey is attached as an appendix to this report (refer to Appendix i).
5.6.4.5 Measurement and operationalisation of the variables
“The type of information that is available will determine the types of analysis that may be conducted” (Whitman, 2004, p308). The research objectives should guide the entire process of data analysis. In qualitative research, a fundamental task is theme identification (Welman et al, 2005, p211). Descriptive techniques which are concerned with the description or summary of the data will be used. In this research study, content analysis was used in Microsoft Excel, as there were two or more variables involved (Welman et al, 2005, p231).
5.7 Discussion of ethical issues
A written agreement has been drawn up to ensure that confidentiality will be kept.
• Autonomy
A letter of authority to conduct the research was obtained from Pick ‘n Pay.
Participants were given the option to take part in the research.
The researcher outlined the study to ensure that the Pick ‘n Pay (Pty) Ltd understood the level of information required from them in order to complete the research.
Informed consent forms were signed by Pick ‘n Pay (Pty) Ltd.
Pick ‘n Pay (Pty) Ltd were made aware of the intended audiences.
• Non-maleficence
Participants remained anonymous.
• Beneficence
The research benefits the researcher for benchmarking purposes.
It benefits society by enabling organisations to realise a higher level of efficiency, and thus better overall customer service.
The results were reported back to Professor Charles O’Neill (Supervisor), Prof Brian McArthur (Co-supervisor), Pick ‘n Pay (Pty) Ltd and Antinomy (Pty) Ltd.
5.8 Summary
The research methodology adopted aligns with the in-depth information required for case study research at Pick ‘n Pay Corporate stores in KwaZulu-Natal. Data types have been reviewed and the collection of data should source the required information effectively for the purposes of this research.
CHAPTER 6
EMPIRICAL RESEARCH, FINDINGS AND INTERPRETATION
6.1 Introduction
Chapter 5 described the research methods applied to collect and collate the data and information. In this chapter, the empirical data is presented and analysed. It is important to note that this empirical information is based on the participant’s knowledge and perceptions on Pick ‘n Pay’s BIS and SCM functions.
In the preliminary stages of this research, Pick ‘n Pay held majority market share in South Africa. It has, however, been noted that over the duration of this research, Shoprite Checkers has subsequently managed to usurp their market leadership profile. According to Business Day, Shoprite’s low-cost reputation resulted in much growth during the recession, unlike its competitors. From July 2009 to July 2010 Shoprite’s share price rose by 49% and Spar by 41%, double Pick ‘n Pay’s 21%
(Business Day, online, 2010, para 6 and para 11). The Citizen states that, “Most of the growth Shoprite has experienced comes from having the best market position in the middle to bottom of the SA food retail market” (The Citizen, 2011, online, para 8). Even though Pick ‘n Pay has taken a knock in market share, they still remain one of South Africa’s two leading grocers.
In the interviews with the National and Regional managers, Pick ‘n Pay commented that their focus was wrong and they were competing with the wrong competitor, Woolworths. On a front end level, while Pick ‘n Pay ensued a battle for ground with Woolworths, Shoprite Checkers and Spar worked on building their low-cost brand and customer loyalty. At the back-end, Shoprite Checkers and Spar spent much of their time investing in the development of distribution centres and strengthening their supply chains – something Pick ‘n Pay are only doing now. Despite this set- back, Pick ‘n Pay are confident that the more recent technologies they have adopted will be a long-term weapon in regaining their market leadership.
In order to gain a broader spectrum of information from Pick ‘n Pay, participants were taken from three management levels, namely, National management level (1),